Editorial illustration for Intel in Talks to Acquire SambaNova at Reduced Valuation from 2021 Peak
Intel Eyes SambaNova Acquisition in Strategic AI Chip Move
Intel moves to acquire SambaNova at valuation below 2021 USD 5 billion peak
Intel is snapping up SambaNova Systems in what looks, for all the world, like a clearance sale. Remember that heady $5 billion valuation from 2021? Gone.
Reports say the price will be lower. The connections here are intensely personal. Intel’s own CEO, Lip-Bu Tan, chairs SambaNova’s board.
Intel Capital is an investor. Then there’s SoftBank, a major backer of the startup, which just funneled money into Intel earlier this year. It’s a tight, incestuous circle of capital.
For the chip giant, this isn’t a gamble on an unknown—it’s a calculated move to grab specialized inference tech and a skilled engineering team. And they’re avoiding the unicorn price tag.
The report noted that SambaNova could sell for less than the $5 billion valuation it had reached in April 2021. Notably, Intel CEO Lip-Bu Tan is currently the chairman of SambaNova Systems. Intel Capital, which Intel is in the process of spinning off into a standalone fund, has also invested in SambaNova Systems.
Another investor in SambaNova, Japan's SoftBank Group, made a major investment in Intel earlier this year. Intel had not yet responded to requests for comment at the time of publication. SambaNova Systems was founded in 2017 in Palo Alto, California by Kunle Olukotun, Rodrigo Liang, and Christopher Ré.
Olukotun and Ré are Stanford professors; Liang previously worked as an executive at Oracle. SambaNova Systems makes an AI chip platform for inference computing, a process where large language models make predictions from vast amounts of data. As of early 2025, the startup had raised a total of $1.14 billion in funding, according to PitchBook data.
In 2020 it raised $250 million from asset manager BlackRock, Intel Capital, the venture firm GV, and other investors, bringing the startup's valuation to $2.5 billion. The following year, SambaNova was valued at $5 billion after a massive funding round of $676 million, led by SoftBank's Vision Fund 2.
So that $5 billion mark now serves as a brutal reminder of how frothy things got. Founded in Palo Alto back in 2017 by Stanford professors and an Oracle veteran, SambaNova built a serious platform for the unglamorous, essential work of inference—actually running AI models. The startup raised over $1.1 billion.
It had deep pedigree. Yet here we are, with an exit that’s a down round. Intel gets a strategic asset it knows intimately, priced by today’s colder, harder market, not 2021’s fantasy.
The pressure now shifts entirely to execution. Buying smart is one thing. Making it count?
That’s the brutal part.
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Common Questions Answered
What is the current valuation of SambaNova compared to its 2021 peak?
SambaNova's valuation has significantly dropped from its $5 billion peak in April 2021. The potential acquisition by Intel is expected to be at a much lower valuation, reflecting the volatile market for AI infrastructure companies.
How are Intel and SambaNova currently connected prior to the potential acquisition?
Intel CEO Lip-Bu Tan currently serves as the chairman of SambaNova Systems. Additionally, Intel Capital has previously invested in SambaNova, creating existing strategic ties between the two companies.
What makes SambaNova an attractive acquisition target for Intel?
SambaNova is a specialized AI hardware startup that could help Intel strengthen its position in the competitive AI chip technology market. The reduced valuation makes the potential acquisition more financially attractive for Intel's strategic expansion.
Further Reading
- Intel Targets AI Inference Leap with Potential SambaNova Acquisition — EE Times Asia
- Intel making yet another AI processor acquisition? — Jon Peddie Research
- Intel (INTC) Pursues Acquisition of AI Chip Maker SambaNova Systems — GuruFocus
- Intel Eyes AI-chip Startup SambaNova for Strategic Boost — Channel Insider
- Intel to acquire AI chip startup SambaNova at around $5 billion — Startups Union
